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In order to be a validator in PoS (at least Ethereum's implementation) you need to lock up the funds, so not sure how an exchange would be particularly well-suited for that – they need to keep most of the coins on their books liquid so that the customers who actually own them can quickly trade them.


You don't seem to understand how exchanges work. Locking the funds won't be problem to exchanges. Most of the funds just sit dormant in cold storage for long periods of times. For withdrawals you always use most recent deposits and you minimize the transfers between hot and cold wallet.


I don't know anyone who keeps large amounts of ETH sitting unused on an exchange.


Just take a look at any of the account tables. Most of it is in exchange cold wallets. These exchanges will be staking against your interests. It has happened before, it will happen again. Just say no to PoS.


But that's only because Ethereum is currently on PoW, so (naive) people don't care.

But as soon the switch happens, people will want to be staking their ETH in pools that will earn them money.


Yeah, in exchanges. Which will ignore the wishes of the actual currency owners, just like happens today. A vast, vast majority of staking users will not have the required 32 ETH for self-staking, and will be delegating this to third parties. PoS gives power to the exchanges, which should not have this power.


It only gives exchanges power if users choose to give them power, which is exactly how a decentralized democratized currency is supposed to work.


The difference to PoW is that the exchanges can do the staking with very minimal effort. I would guess majority of exchanges give the staking results to customers while taking some % fee.

I don't have any problem with this in general, I don't think it is wrong to do business like that. But I personally prefer PoW because it looks like it naturally separates the mining work from exchanges, creating more decentralized economy.


Right.. they keep them in secure web browser wallets... (




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